THINGS TO CONSIDER WHEN SELECTING OFFICE SPACE
 
   

Things To Consider When Selecting Office Space

 
   

By Larry Markson


1.   How many square feet?

a.   Rentable - Outside dimensions of the space, which may include some common property.

b.   Usable - Internal dimensions of your actual working space. We recommend you start with between 1000 and 1200 square feet.

2.   How many dollars per square foot?

3.   Is the landlord willing to give you a "concession" (free rent from the time you sign the lease until you actually open)? We recommend a minimum of 60-90 days, depending, of course, on current real estate values (demand and supply).

4.   Is the landlord willing to give you a graduated lease? That means lower rent for the first two years, and increases with the term of lease.

5.   Who pays for heat?

6.   Who pays for electric?

7.   What time do the heat and electric get turned off, and are they on or available over the weekends?

8.   Can you have full 24 hour access, 7 days per week?

9.   Can you install an x-ray unit?

10.   Is there a 220 volt electric service existing, and how far is it from your potential space?

11.   Is your office visible from the street?

12.   Is there adequate lighting outside and in common hallways?

13.   Is there sufficient parking for your patients?


SIGNING A LEASE


NEVER SIGN A LEASE WITHOUT FIRST HAVING YOUR LICENSE TO PRACTICE, OR BEFORE YOU SECURE A COMMITMENT FOR THE CAPITAL NECESSARY TO OPEN!

The following are some suggestions and guidelines as to provisions that need to be negotiated and/or included in your lease*:

1.   Five year lease with five year option.

2.   A reasonable sublet clause MUST be included in the lease (e.g. "the right to assign or sublet cannot be unreasonably withheld"). Without a clause like this, we suggest you do not rent this particular space.

3.   Does the lease have a yearly escalation clause tied to the Consumer Price Index (C.P.I.)? If so, we suggest you negotiate a flat rate for 2 years and then an escalation cap of 6% for each additional year (or as low as you can).

4.   Two months security is customary on professional space, however, we recommend that you negotiate the security down to only one month.

5.   The right to have an x-ray unit installed and operating according to Health Department Code needs to be written into the lease.

6.   Permission to gain 24 hour, 7 day a week access to the office also needs to be in writing.

7.   The right to display professional signs or shingles (specify number of signs, sizes and locations).

8.   Have the landlord specify the number of parking spaces to be assigned (if applicable).

*We highly recommend that you retain an attorney to review the lease.



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